Accounting

EXERCISE 14-2

GALLUP CORPORATION

Condensed Income Statements

For the Years Ended December 31

| | 2012 | | 2011 |

| | | | | | | | |

| | Amount | | Percent | | Amount | | Percent |

| | | | | | | | |

Sales Cost of goods sold Gross profit Selling expenses Administrative expenses Total operating expenses Income before income taxes Income tax expense Net income | | $750,000  465,000  285,000  120,000   60,000  180,000  105,000   33,000 $ 72,000 | | 100.0%  62.0%  38.0%  16.0%   8.0%  24.0%  14.0%   4.4%   9.6% | | $600,000  390,000  210,000   72,000   54,000  126,000   84,000   24,000 $ 60,000 | | 100.0%  65.0%  35.0%  12.0%   9.0%  21.0%  14.0%   4.0%  10.0% |

EXERCISE 14-3

(a) CONARD CORPORATION

Condensed Balance Sheets

December 31

| | | 2012 | | 2011 | | Increase(Decrease) | | PercentageChangefrom 2011 |

| | | | | | | | | |

| Assets Current assets Property, plant &   equipment (net) Intangibles Total assets | | $ 74,000  99,000  27,000$200,000 | | $ 80,000  90,000  40,000$210,000 | | $ (6,000) ( 9,000) (13,000)$(10,000) | |  (7.5%)(10.0%)(32.5%) (4.8%) |

EXERCISE 14-3 (Continued)

CONARD CORPORATION

Condensed Balance Sheets (Continued)

December 31

| | | 2012 | | 2011 | | Increase(Decrease) | | PercentageChangefrom 2011 |

| | | | | | | | | |

| Liabilities and stock-   holders’ equity Current liabilities Long-term   liabilities Stockholders’   equity Total liabilities and   stockholders’   equity | | $ 42,000 143,000  15,000$200,000 | | $ 48,000 150,000  12,000$210,000 | | $ (6,000) (7,000) 3,000)$(10,000) | | (12.5%) (4.7%)(25.0%) (4.8%) |

(b) CONARD CORPORATION

Condensed Balance Sheet

December 31, 2012

| | | Amount | | Percent |

| | | | | |

| Assets Current assets Property, plant, and...